According to data from the National Bank, since the beginning of the current year, the loan portfolio of the RK banking sector has increased by 10.6%, reaching KZT 17,471.8 billion by the end of August. This includes an increase of 21.6% in bank lending to individuals, reaching KZT 8,661.3 billion. It is noteworthy that the share of retail loans in the loan portfolio increased by almost 5% to 49.6% over 8 months. Thus, it is clear that the retail sector significantly influences the growth dynamics of newly issued loans. Experts believe that as the economy's growth rates recover (which in turn depends on the pace of coronavirus vaccination), lending volumes will also increase. According to Ranking.kz, however, consumer lending volumes in the Kazakhstan economy lag significantly behind those in Russia and other countries. For example, at the end of 2020, the ratio of all types of personal loans to GDP in Kazakhstan was 10.7%, compared to 18.7% in Russia. Kazakhstan's consumer loan-to-GDP ratio was 6.2%, while in Russia, it was 10%.
Meanwhile, this year saw a significant improvement in the quality of the retail portfolio compared to last year. According to the National Bank's reports, by the end of August, the delinquency rate for all types of loans issued by second-tier banks to individuals was 7.5%, compared to 12.1% on the same date in 2020. For comparison, at the beginning of the current year, the share of loans with overdue debts in the individual loan portfolio reached almost 9%.
One of the banks that significantly increased its retail lending since the beginning of the year is Nurbank. In the first eight months of the current year, the issuance of unsecured loans to individuals grew by 9.4% compared to the same period in 2020. The bank noted that it intends to further increase lending to individuals by expanding its range of financial products, improving service quality, and greatly simplifying and expediting procedures.
In the competition for borrowers, financial institutions offer various terms to clients. Speaking about Nurbank, it can be noted that there are preferential conditions for employees of the bank's partner companies. Currently, there are about 1500 such companies located throughout the country. The advantage for borrowers from these companies is a reduced rate of 17% (APR 26.9%) instead of 18% (APR 28.2%). The full list of partners can be found in bank branches. Branch managers will also advise on other favorable terms. According to Nurbank specialists, unsecured loans have become the most popular. To obtain such a loan, a minimal package of documents is required, and the application review does not take much time. At the same time, the loan amount meets the needs of most clients: the minimum is KZT 150,000, the maximum is KZT 5 million, and the average unsecured loan check is KZT 2.1 million.
The bank also emphasizes that it provides not only loans for various customer needs but also offers support to borrowers with overdue debts. Each client's situation will be considered individually, and Nurbank has several campaigns in place until the end of this year for secured and unsecured loans, allowing for debt reduction under acceptable conditions for debtors. For instance, penalty waiver, loan term extension, partial repayment of debt and accounts payable, and debt forgiveness (write-off) with partial repayment are offered. Terms of the campaigns can be found on the bank's official website or by contacting bank branches.
Furthermore, loans from other banks can be refinanced at Nurbank. This product is in demand among the financial institution's clients. The minimum loan amount is KZT 150,000, and the maximum is KZT 5 million, with a repayment period of up to 60 months.
For all loan products, you can calculate estimated monthly payments and apply on the bank's website. Payment methods are also crucial for borrowers. In addition to branches (there are 17 in different regions), payments can be made through payment terminals, the NurPay payment service, and the bank's mobile application. The bank intends to continue investing in creating optimal service conditions for clients.
"We are talking about new products we are developing and improving those we already have. For example, the final testing of the updated mobile application for individuals is now underway. This will allow our clients to gain online access to products that are not available in the current mobile application," said Aydyn Yesmoldin, Managing Director of Nurbank.
In August of the current year, the international agency S&P Global Ratings affirmed the long-term and short-term credit ratings of JSC Nurbank at 'B-/B' and the bank's national scale long-term rating at 'kzBB-'. The outlook is 'Stable'. According to S&P Global Ratings experts, the decision is based on the gradual improvement of the bank's asset quality supported by the state and the owner. Analysts conducted a thorough analysis of the bank's compliance with all measures taken under the financial stability program recommended by the regulator. "The 'Stable' outlook on Nurbank's ratings reflects our expectations that the bank will be able to gradually improve its asset quality and maintain sufficient capital reserves for planned business development. We expect the bank to support a stable funding profile and adequate liquidity reserves," said Aydyn Yesmoldin. After eight months of 2021, Nurbank posted a profit of KZT 1,207 million.
